Feasibility and Business Planning Vocabulary Business Concept Vision Statement Feature Mission Statement Benefit Distribution Channel Feasibility Analysis Direct Channel Industry Indirect Channel Target Customers Small Business Administration (SBA) Prototype Trade Association Business Model Competitive Matrix Value Chain Chamber of Commerce

Feasibility Analysis Will a Business concept be successful? Does this idea have potential?

Feasibility Analysis process: Are there customers for what you want to offer? (Demand) What conditions must be present for you to decide to go forward with this business?

Feasibility Analysis Includes: Industry, Market consumers, Founding team, Products and Services, Finances needed, Competition and Value chain analysis.

A Business Concept is: An idea for a business

A Business Model describes: How the business will create money with the business concept. Costs, projections and timelines should all be calculated, showing when profit (Positive Cash Flow) will be generated.

Industries are Business that have similar, complementary, or supplementary products.

Target Customers Who is in the market for this product? Customers profiles are always discussed in terms of :  Geographic: Where customers live?  Psychographic: What are the “Lifestyles” of customers?  Demographic: What are the characteristics of the customers?

Competitive Matrix (Grid) Examine your competitors:  What are the “Features” of their products?  What are the “Benefits” of their products?  What are their Strengths and Weaknesses?  How do they do business? and compare it to how you want to do business.

Competitive Matrix (Grid)

Prototypes are: Working models of a new product. Prototypes help entrepreneurs with product improvements and viability.

Feature (Product) Features are quality, characteristics or physical attributes of a good or service.

Benefit (Product) All products have “Features and Benefits” Benefits is the good a customer derives from a product. Businesses must ask how does this product “Benefit” the customer?

A Distribution Channel is: The steps a product goes through (producer to consumer), this is sometimes known as Operations Management or Logistics. (more on this in Chapter #16)

A Direct Channel is: It is when the product goes from the producer “direct”-ly to the consumer. The internet or direct mailings.

An Indirect Channel means A product is sold to an intermediary, like a wholesaler or a retailer, before selling to a consumer.

The Value Chain Is the Distribution Channel your product will flow from producer to consumer. The goal of all distribution channels is to deliver the product with maximum value for the least cost

The Value Chain This displays the possible distribution channels

A Business Plan is: A document that describes a new business. It explains to investors why this business concept deserves financial support.

A Business Plan is divided into many parts. These parts could include: Industry Overview Market Analysis Competitive analysis Marketing Plan, (4Ps) Operational Plan, (Distribution and Logistics) Organizational Plan Financial Plan Growth Plan Contingency Plan

Common mistakes on Business Plans include: Exaggerated growth levels Trying to do everything, investors prefer founding teams over individuals Underestimated need for capital

In the plan you will need: Vision and a Mission Statements

A Mission is: The purpose of the business.

A Vision is different than a Mission. A Vision is how you see your business in the future.

Business Plans begin with an Executive Summary An Executive Summary are the key points and concepts of your business plan. Its purpose is to give readers a reason to read the plan.

Sources of information on writing a business plan could be: The Small Business Administration Trade Publications Trade Associations Library The Internet Chamber of Commerce

Trade Associations Are organizations that are made up of individuals and businesses in a specific industry.

Trade Publications are magazines or industry newsletters published by Trade Associations

Chamber of Commerce Is an organization, that helps businesses grow by providing business and consumer information.

Small Business Administration (SBA) is: A federal agency that provides entrepreneurs with information and financial assistance. (Usually staffed with retired entrepreneurs.) See SBA.govSBA.gov